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ERDF co-financing of loan-based subsidies : issues and options relating to the tail-end problem

Yuill, Douglas and Wishlade, Fiona and Downes, R. and Josserand, Francois and Polverari, Laura and Rooney, ML and Taylor, Sandra and Vitale, R (2001) ERDF co-financing of loan-based subsidies : issues and options relating to the tail-end problem. [Report]

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Abstract

Under Structural Fund programmes, expenditure is eligible for co-financing usually only up to two years after the end of the programme period. This is problematic for the co-financing of soft loan schemes with the European Regional Development Fund, where the loans extend beyond the programme period and the necessary subsidies are paid in instalments in arrears, as they are needed, rather than as a lump sum contribution in advance. The subject of the study is to review the methods of co-financing subsidies on such soft loan schemes where such subsidies are still needed after the end of the Structural Funds’ eligibility period due to the loans maturing after that date.